Fisheries accounts, a summary of current work in New Zealand and AustraliaPaper for 12th Meeting of the London group on
Environmental Accounting Rome, 17-19 December 2007 Jane Harkness and David Bain
PresentationJane Harkness – Statistics New Zealand
Peter Comisari – Australian Bureau of Statistics
Fish Monetary Stock AccountNew Zealand
Jane Harkness
Overview• Background
– Fish Monetary Stock Account
– Quota Management System QMS
• Data and Methods
– Issues
• Results
• Questions
Overview• Asset value of New Zealand’s commercial
fish resource
Exclusions
• Recreational catch
• Customary fishing
• Aquaculture
• Non QMS species
The Quota Management System
• Began in 1986
– In 1986 the QMS managed 27 species
– In 2006 the QMS managed 94 species
• Theoretical benefits of the system
– Sustainable use of resources
– Economic efficiency
The Fisheries Management Areas
• Species are managed in Quota Management Areas
• 10 Fisheries Management Areas FMAs
hoki HOK has one QMA
cardinal fish CDL has 10
Snapper
QMA TACCSNA1 4500SNA2 315SNA3 32SNA7 200SNA8 1300
Total 6347
Quota Management Areas
Management Mechanisms
• Quota representing shares for a species in a Quota Management Area
• Total Allowable Commercial Catch TACC is set annually
• The Quota holding generates an Annual Catch Entitlement ACE (after 2001)
Quota shares, TACC and ACE
JMA7 has 100 million quota shares.▼
J Fisher owns 10,000 quota shares or 0.01 percent of the JMA7 fish stock.
▼On 1 October, J Fisher’s shares generate ACE.
▼The TACC for JMA7 is set at 32,000 tonnes, therefore 1 share = 0.32kg.
▼J Fisher’s 10,000 quota shares generate 3,200kg of ACE.
▼J Fisher can catch, or sell the right to harvest, 3.2 tonnes of JMA7 in that year.
Data & Methods
Data components
– Quota
– ACE – Annual Catch Entitlement
– TACC – Total Allowable Commercial Catch
– Catch statistics
Data & Methods
• Ministry of Fisheries administer the QMS and assist in interpretation of data
• Data supply
– Supplied by FishServe
– Trades of Quota and ACE must be registered
– TACC also supplied
Initial Methodology:Fish Monetary Stock Account 1996-2003
• Asset value = Quota x TACC
• Missing values could be modelled
• Modelled values < 5% of valuation
Declining number of Quota trades
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Quota 99558 102927 72211 66771 80783 96198 105222 117954 113293 102243 82207ACE NA NA NA NA NA NA 7941 7603 7088 5533 7203
Quota 86423 47214 59025 70148 66309 50241 - 89517 - 82800 -ACE NA NA NA NA NA NA 5924 8011 7453 5423 5884
Quota - 3742 2300 5980 2999 2300 - 2848 - - -ACE NA NA NA NA NA NA 643 19 - 221 -Quota 90707 16118 19060 35691 12022 41400 40595 47265 - - -ACE NA NA NA NA NA NA 1489 839 2055 2446 2395
Quota 90569 67970 64294 66505 47546 78839 100004 77648 - - 96034ACE NA NA NA NA NA NA 4493 5497 6535 6042 6150
Note: values are for demonstration only
SNA7
SNA8
Quota and Ace values for Snapper
SNA1
SNA2
SNA3
Change in Methodology:Fish Monetary Stock Account 1996-2006
• Previously Quota x TACC
• Decreasing Quota trades → Increase in modelling
• Now ACE trades used as approximation of resource rent RR
• Quota x TACC + NPV
• Assumptions
Net Present Value
r
QpV
ttt
• Where– Vt value of the asset at time t
– pt unit rent price of fish at time t
– Qt quantity of fish catch during time t
– r the discount rate
Illustration of results
SpeciesQuota
management area
Year
Quota transfer value per
tonne (NZ$)
ACE transfer value per
tonne (NZ$)
Discount rate
TACC
Valuation derived
from discounted ACE values
(NZ$ millions)
Source of final
valuation figures
Final valuation
(NZ$ millions)
Hoki HOK1 1996 2674 .. 240000 quota values 642
Hoki HOK1 1997 2224 .. 250000 quota values 556
Hoki HOK1 1998 1590 .. 250000 quota values 398
Hoki HOK1 1999 2321 .. 250000 quota values 580
Hoki HOK1 2000 2047 .. 250000 quota values 512
Hoki HOK1 2001 3891 .. 250000 quota values 973
Hoki HOK1 2002 3499 331 0.09 200000 735 quota values 700
Hoki HOK1 2003 4076 337 0.09 200000 749 quota values 815
Hoki HOK1 2004 .. 348 0.09 180000 695 ACE values 695
Hoki HOK1 2005 .. 487 0.09 100000 541 ACE values 541
Hoki HOK1 2006 6268 525 0.09 100000 583 quota values 627
Symbol:
.. not available
Issues
• Choice of discount rate
• Reliability of price information
• Comparability of alternate methods for estimating resource rent
ResultsTotal Asset Value of New Zealand’s Commercial Fish
Resource 1996 – 2006 September Years
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
$million
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000Tonnes
Total asset value Total TACC
Results by species
Species 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Hoki 642 556 398 580 512 973 700 815 695 541 627
Rock lobster 368 376 407 374 465 447 591 689 644 585 612
Paua 143 195 208 193 255 245 260 328 355 379 366
Arrow squid 167 140 76 136 132 81 52 103 240 138 298
Orange roughy 233 262 194 208 197 157 237 225 324 300 277
All other species 1188 1197 1002 1109 1081 1195 1346 1441 1607 1788 1646
Total 2740 2726 2285 2600 2641 3097 3185 3601 3866 3730 3825
New Zealand’s Commercial Fish Resource
1996-2006 September years(NZ$ million)
Future developments
• Account will be produced regularly
• Feasibility of publication at QMA rather than species level
• Data consistency
Fish Accounts
Peter ComisariLondon Group Meeting,
December 2007
Fish Accounts: relevant standards
• 1993 SNA
• SEEA - SEEAF
1993 SNA
• SNA Fish resources fall into 2 categories:– non-financial produced assets
(aquaculture)– non-financial, non-produced, tangible
assets (wild fish stocks)
SNA Fish resources
• Aquaculture– fish treated as inventories (for
harvest) or produced assets (for breeding)
– value of natural growth treated as an addition to economic output, as it occurs
• growth may occur over a number of accounting periods
SNA Fish resources
• Wild fish stocks– only includes fish stock where
ownership rights established/enforced– ownership of certain straddling or
migratory fish stocks not enforced• excluded from SNA assets
– fish must be capable of bringing economic benefits
SNA Fish resources• Range of potential production uses:
– commercial wild-fish catch– commercial aquaculture– ornamental fish collection– recreational fishing– traditional/customary fishing– ‘ecotourism’
• In practice, measure only production and stocks of aquaculture and wild-fish catch
Draft SNA93rev.1 Fish resources• Extends scope to fish stocks on the
high sea subject to international agreement on how much individual countries can catch– include only those stocks currently
exploited, or likely to be exploited in near future
SEEA
• Takes a broader view of measuring fish than SNA– ‘all measureable environmental
entities of interest’– no need to be ‘economic’ or owned– in practice, tends to cover same
stocks as SNA
SEEA - fish
• Fish are ‘aquatic resources’, part of ‘biological resources’
• Aquatic resources– Cultivated (SNA ‘produced’)
• for harvest• for breeding
– Non-cultivated (SNA ‘non-produced’)
SEEA – costs of depletion etc.
• SEEA allows costs of depletion and degradation to be incorporated into measures of production and income
• SNA measures these effects in the Other changes in volume of assets account
Valuing fish depletion
Depletion of a renewable resource?Propose:
value of net natural growth is output stock value decline due to harvest is
depletion (CONC) adjusted measures of output, income
etc.Aim: to better indicate sustainability of income stream derived from fishing
Valuing fish depletion
using SNA accounts as a templateƒ value of net natural growth recorded as 'other
non-market output' in the Production accountƒ value of harvest recorded as 'consumption of
natural capital‘ (depletion) in Production accountƒ 'excess' position represents an addition to (or
subtraction from) value addedƒ operating surplus & saving change by 'excess'
amount in income accountsƒ additions and ‘disposals’ of non-produced non-
financial assets recorded in Capital accountƒ net lending is unchanged